What does "subject to conditions" mean in real estate?

When a Calgary buyer submits an offer and the seller accepts, the parties have an agreement — but it is not necessarily a done deal. Most Alberta residential offers include conditions that must be satisfied before either party is legally bound to complete the transaction.

Common conditions in Calgary offers

The three most common conditions in Calgary real estate offers are:

Financing condition: The buyer has a set period (typically 5–7 business days) to obtain a firm mortgage commitment from their lender. If financing is declined or the terms are unacceptable, the buyer can waive the condition or void the contract.
Home inspection condition: The buyer retains a licensed home inspector within the condition period (typically 5–7 business days). If the inspection reveals significant defects, the buyer can negotiate a price reduction, request remediation, or void the contract.
Sale of existing home condition: The offer is conditional on the buyer selling their current property within a specified period. This condition protects buyers who cannot carry two mortgages simultaneously.

The condition period

Each condition specifies a deadline — the condition removal date. In Calgary's active market, condition periods are typically 5–10 business days from mutual acceptance. In very competitive multiple-offer situations, buyers sometimes compete by shortening or even waiving conditions — which increases their risk but makes their offer more attractive to sellers.

Waiving vs satisfying conditions

A condition is removed from the contract in one of two ways: waived (the condition-holder elects to proceed regardless of the outcome) or satisfied (the condition was met — the financing came through, the inspection was acceptable). In either case, the buyer submits a written waiver to the seller's agent by the condition deadline. Once all conditions are waived or satisfied, the offer is "firm."

What happens if a condition is not met

If a condition is not satisfied and the buyer does not waive it by the deadline, the contract voids automatically. The buyer receives their deposit back in full. The seller is free to re-list the property. No party is in breach — the condition was a legitimate contractual protection.

Seller's right to accept other offers

During the condition period, the seller can continue to accept showings but cannot accept another buyer's offer unless the first offer includes a time clause (or "bump clause") allowing the seller to give the first buyer a short window to waive conditions when a new offer arrives.

Frequently asked questions

Can I get my deposit back if I void a conditional offer?

Yes. If you void the offer because a condition was not satisfied (e.g., financing fell through or the inspection revealed unacceptable defects), your deposit is returned in full. The condition must be a legitimate contractual condition — not a manufactured excuse to exit a firm deal.

What is a firm offer vs a conditional offer in Calgary?

A firm offer has no conditions — both parties are legally bound to complete the transaction. A conditional offer is subject to specified events occurring within a set period. Most Calgary offers start conditional and become firm when all conditions are waived or satisfied.

Should I waive the home inspection condition in a competitive market?

Waiving the inspection condition removes a critical protection. In a competitive offer situation, many Calgary buyers waive conditions to win. Before waiving, consider a pre-offer inspection (where you hire an inspector before submitting your offer) — this gives you information without making your offer conditional.

Talk to Ryan Van Spengen

Calgary REALTOR® specialising in divorce, estate, and upsizing transactions. Free consultation — no obligation.

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This page is for general information only and does not constitute legal or tax advice. Consult a qualified Alberta lawyer or accountant for advice specific to your situation.